Piecemeal approach to contributions reform threatens housing investment

Home Media Releases Piecemeal approach to contributions reform threatens housing investment

Thursday 25 May 2023

MEDIA RELEASE

Piecemeal approach to contributions reform threatens housing investment

The Property Council of Australia has expressed their concern that the piecemeal approach the new State Government is taking to infrastructure contributions reform will threaten housing investment.

The introduction of the Housing and Productivity Contributions Bill 2023 into Parliament this week risks not delivering the savings or benefits previously promised under the wholistic reform package recommended by the Productivity Commission.

The Housing and Productivity Contributions Bill will impose broad-based charges to all developments within Greater Sydney, Central Coast, Lower Hunter and the Illawarra Shoalhaven (with some exemptions).

Detached dwellings in Greater Sydney will now cost an additional $12,000 to deliver with Apartments to cost an additional $10,000.

Property Council’s Acting NSW Executive Director Anita Hugo said the Property Council welcomed the increased focus on the governance of future infrastructure investment under the Housing and Productivity Contributions Bill, but not without concerns.

“Industry remains deeply alarmed with the wave of other contributions charges which will effectively operate as a new tax on homes,” Ms Hugo said.

“Alongside these new contribution charges, Sydney Water are introducing a big new tax on the delivery of new homes in the West, with the future of local council contributions also uncertain.

“This piecemeal approach to contributions reform provides industry with no clarity on the full cost envelope of development and will only serve to deepen the housing crisis and drive investment out of NSW.

“Our infrastructure contributions framework still deserves the clarity, simplicity, certainty, transparency and efficiency that the NSW Productivity Commission’s reforms originally sought to deliver.

“A piecemeal approach to contributions reform threatens any chance of delivering the 315,000 new homes needed under the National Housing Accord,” said Ms Hugo.

ENDS

Media contact: Aidan Green | 04910 300 28 | [email protected]